The sanction follows an investigation into the market for
lines leased to competitors, the agency said today in a
statement. Telmex didn’t provide service for almost two years to
rival Axtel SAB in 32 cities and six inter-city routes, the
agency said.

Regulators are setting their sights on America Movil,
controlled by billionaire Carlos Slim, in an attempt to loosen
its grip on Mexico’s phone market. President Enrique Pena Nieto,
who took power in December, has said improving competition in
telecommunications is one of his top goals.

While Telmex is still reviewing the antitrust ruling, its
initial conclusion is that evidence the carrier provided to the
agency wasn’t properly taken into account, the company said in
an e-mailed statement.

The carrier has 30 business days to appeal the decision,
the antitrust agency said.

Telmex has about 80 percent of the nation’s landlines, and
Mexico City-based America Movil also controls 70 percent of the
mobile-phone market.

America Movil was little changed at 15.85 pesos at the
close in Mexico City. The shares have risen 2.2 percent in the
past 12 months, compared with an 18 percent jump for Mexico’s
benchmark IPC index.